Nonprofit Governance Research Articles

Webinar focuses on nonprofit governance issues

Webinar focuses on nonprofit governance issues

Collaborative Crisis Management and Nonprofit Governance

Collaborative Crisis Management and Nonprofit Governance

Farming with a mission: the case of nonprofit farms

AbstractOrganizations interested in food alterity, security, and justice are often governed as 501(c)(3) nonprofits. As such, they are required to fulfill missions beyond profit maximization. This study focuses on the role of nonprofits in the agrifood system. Looking at nonprofit farms as both farms and as nonprofits, we seek to understand whether nonprofit organizations, as an alternative mode of governance, creates the possibility of an alternative economic practice, set apart from the conventional food system. We constructed a national database of nonprofit farms and the characteristics of the counties in which they are located. Our findings indicate that nonprofit farms tend not to be in the places with the most need of the services provided, which we argue is due to the structure of nonprofit governance, namely that nonprofits, while not profit-maximizing, are dependent on external resources, particularly donations. While they do operate as an alternative economic practice, their nonprofit mode of governance renders them unable to repair the failures of the current food system. Nevertheless, these farms do contribute to their local communities, both in terms of meeting their mission and as members of a broader local food system infrastructure. This is true whether or not these farms specifically state that food system transformation is part of their mission.

Governance of Non-Profit Organizations in Developing Countries: Malaysia and Indonesia

Non-profit organizations (NPOs) play a significant role in the implementation of Sustainable Development Goals (SDGs) by serving as intermediaries between governments, communities, and businesses, facilitating the localization and contextualization of global goals, including developing countries. Malaysia and Indonesia are two prominent developing countries in Southeast Asia. Despite sharing similar socioeconomic contexts, both countries may exhibit different approaches to regulating and governing their non-profit sector. Drawing upon the existing literature and governmental documents, this study discusses a comparative analysis of the regulation and governance of NPOs in Malaysia and Indonesia. Specifically, this study discusses the similarities and differences in terms of the legal framework governing the formation, existence, and tax treatment for NPOs in both countries. By identifying the similarities and differences, this study contributes a deeper understanding of the opportunities and challenges governing NPOs in developing countries.

Social enterprise governance and labor equity: the emerging role of work-integrated social enterprises in a niche labor market

PurposeThis paper analyzes how a national social enterprise policy encourages the social missions of social enterprises and uncovers the relationships between social enterprise governance and labor equity, an area that has been rarely studied in nonprofit governance studies.Design/methodology/approachThe study analyzes the effects of four legal requirements for work-integrated social enterprises (WISEs) codified by the Social Enterprises Promotion Act (SEPA, 2007) in South Korea. Then, it relies on panel regression analysis (2020–2022) to examine how the compositions of the governance of WISEs are related to their hiring and wage equity.FindingsThe institutional arrangements required by SEPA have resulted in positive social impacts for most WISEs. However, the results of regression models show that individual participant groups in the WISE governance achieved mixed results depending on the labor issue.Research limitations/implicationsGenerally, this research explores the concept of diversity and its utility in nonprofit governance, with a particular focus on targeted diversity policies, demonstrating that governance arrangements influence the success of these policies.Practical implicationsThe findings bring new insights for policymakers about “altruistic economic entities.” For practitioners in social enterprises, the results of the regression models underscore the importance of understanding the participant composition of decision-making meetings.Originality/valueThis study sheds light on labor equity, which government-certified social enterprises should achieve from the perspective of nonprofit governance.

The Hidden Dynamics of Nonprofit Governance: Introducing a Framework Using Principal-Agent and Stewardship Theories

The Hidden Dynamics of Nonprofit Governance: Introducing a Framework Using Principal-Agent and Stewardship Theories

University of San Diego's Nonprofit Governance Symposium

University of San Diego's Nonprofit Governance Symposium

University of San Diego's Nonprofit Governance Symposium

University of San Diego's Nonprofit Governance Symposium

Diversifying the workplace in nonprofit organizations: Discourses and perspectives on ethnic diversity

AbstractThis study analyses the perspectives of nonprofit organizations (NPOs) on workplace diversity. Organizational diversity is a well‐established research topic in both profit management and organization studies, as well as in nonprofit scholarship. However, diversity is often discussed from a managerial point of view and, particularly in nonprofits, with little attention to workplace diversity. Using interview data from 25 Belgian NPOs, we explore how leaders in different types of nonprofits approach workplace diversity, discursively and in their organizational practices. Our analysis is centered around Maier and Meyer's typology on nonprofit governance and aims to understand how workplace diversity is perceived in organizations with a domestic, professionalist, grassroots, and civic discourse. We outline the main diversity perspectives underlying these governance discourses. Our study reveals that the way NPO leaders approach workplace diversity is shaped by their overall governance, resulting in differing discourses that go beyond business or social justice rationales. We conclude that there are various ways in which NPOs differentiate diversity, making it important not only to go beyond a managerial/business and social justice discourse, but also to unpack the different forms in which civic or grassroots discourses for example manifest themselves in the nonprofit sector.

Nonprofit governance in times of Covid-19: should organizations change their practices and strategy in the middle of a crisis?

PurposeIn the face of crises, nonprofit organizations (NPOs) have focused on their financial viability but there are other operational aspects to consider (e.g. activity or volunteer involvement). This study aims to investigate whether governance changes made by NPOs in times of crisis have enhanced organizational viability in a broader sense.Design/methodology/approachThrough community-engaged research, the link between governance changes and organizational viability is examined. This study is based on a survey of 10,926 French NPOs and the conceptual framework of societal orientation.FindingsThey show that changing governance in the midst of a crisis can protect organizational viability, if the beneficiaries and members remain the core of the strategic target and if the content of volunteering remains stable.Research limitations/implicationsThis study, therefore, calls for a better study of the risks of governance changes for internal stakeholders, both at the level of scholars and within the organizations themselves. The results extend recent works on governance change and highlight the relevance of societal orientation in times of crisis.Practical implicationsThis study helps to counter the criticisms regularly made about governance (particularly in France) and highlights the importance of maintaining the board of directors in NPOs. It invites NPOs to make decisions that protect their values, mission and beneficiaries at all times.Originality/valueThis study focuses on societal orientation in relation to stakeholder theory, as well as the nonfinancial aspects of viability.

Using Self-Assessments to Improve Board Performance and Build Nonprofit Capacity

This paper presents the nonprofit board self-assessment tool as a valuable, formative addition to the toolkit of nonprofit stakeholders, including evaluators, who are focused on improving both board and organizational performance. Using self-assessment data from a study of 156 nonprofits, the study tested five hypotheses about the effectiveness of five nonprofit governance best practices: strategic planning, reducing ambiguity on the board, board giving, strong internal controls, and evaluating the chief executive officer. The study finds that some nonprofit management best practices are more effective than others when it comes to assessing board performance. Moreover, consistent with previous research, board members and CEOs occasionally view performance differently. The paper concludes with a discussion about how nonprofit organizations, evaluators, and others can use these findings, as well as self-assessment tools, to improve nonprofit board governance and strengthen organizational capacity.

A Phenomenological Approach to the Dynamic Analysis of Nonprofit Governance

A Phenomenological Approach to the Dynamic Analysis of Nonprofit Governance

The Role of Board Financial Monitoring Strength and Donor Pressure in Nonprofit Auditors’ Assessment of Changes in Program Expense Allocations

SUMMARY Nonprofits face inherent risks from both donor pressure to increase program spending and a high propensity for reporting errors. Simultaneously, in contrast to for-profit settings, limitations of nonprofit governance can raise auditors’ concerns about a board’s effectiveness as a control mechanism. We experimentally examine how a nonprofit board’s stronger and weaker monitoring strength influences auditors’ assessments of a client’s program expense allocations under conditions of higher and lower donor pressure to increase program spending. Auditors assess management’s expense allocations as more appropriate, and document fewer risk factors, only when board financial monitoring is strong and donor pressure is lower. Further, auditors rely on strong boards to reduce errors, but not intentional misstatements related to management’s allocation of functional expenses. These findings suggest that, in contrast to how auditors use for-profit governance, auditors may question the ability of even strong nonprofit boards to mitigate instances of intentional functional expense allocation misreporting.

Using Self-Assessments to Improve Board Performance and Build Nonprofit Capacity

This paper presents the nonprofit board self-assessment tool as a valuable, formative addition to the toolkit of nonprofit stakeholders, including evaluators, who are focused on improving both board and organizational performance. Using self-assessment data from a study of 156 nonprofits, the study tested five hypotheses about the effectiveness of five nonprofit governance best practices: strategic planning, reducing ambiguity on the board, board giving, strong internal controls, and evaluating the chief executive officer. The study finds that some nonprofit management best practices are more effective than others when it comes to assessing board performance. Moreover, consistent with previous research, board members and CEOs occasionally view performance differently. The paper concludes with a discussion about how nonprofit organizations, evaluators, and others can use these findings, as well as self-assessment tools, to improve nonprofit board governance and strengthen organizational capacity.

The Organization of Social Enterprises

Growing interest in the role of business entities in addressing social problems highlights the potential of social enterprises—organizations that cover all or most of their costs through revenue-generating business and have an objective to address a societal problem. A social enterprise can be an efficient and effective way to create social value by internalizing externalities, exploiting complementarities with commercial activities, providing better prices or quality to disadvantaged customers, and reducing the need for scarce philanthropic support. The challenges of managing an organization for financial success and social impact may limit their potential. Social enterprises can be for-profit or nonprofit organizations. The legal and institutional structure of for-profit and nonprofit governance and financing makes it challenging for a social entrepreneur to find a business model and organization structure to succeed.

New York passes law revising nonprofit governance regulations

New legislation signed into law by New York Gov. Kathy Hochul late last year makes significant changes to the state's regulations relating to nonprofit governance.

Corporate Governance and its Impact on the Efficiency of Internal Control on Non-Profit Government Institutions: an Exploratory Study

Purpose: The aim of the research is to define the importance of Corporate Governance (CG) and its role in providing appropriate environment to operate the internal control system (ICS) to achieve goals of non-profit governmental institutions. Theoretical framework: The research included defining the nature of corporate governance in light of the internal control systems in Iraqi government institutions that are not aimed at achieving profits. Design/methodology/approach: The research was implemented on a sample of non-profit governmental institutions. The researcher used the descriptive method in the theoretical aspect and analysis in the applied aspect. The research reached a set of conclusions, and the research came out with a set of recommendations that serve its objectives. Findings: The study concluded that there is a relationship between the main and secondary variables, and we conclude from the results that activity of the higher administrations should not be limited to directing the dissemination of the concepts and principles of institutional governance. Research, Practical & Social implications: In light of the adoption of the concept and principles of institutional governance. And efficient ICS that are able to lead the modernization trends in the public service without giving way to the spread of administrative and financial corruption, which has become a scourge that afflicts the body of the Iraqi government institutions at the present time. Originality/value: This study is one of the limited studies that dealt with corporate governance in non-profit organizations in Iraq, in light of the high levels of administrative and financial corruption, as well as weak internal control systems.

Implementation of Good Governance for Zakat Management (Case Study at Baznas Kudus Regency)

This study aims to analyze the implementation of good governance in Zakat Management Organisation (Baznas) Kudus. This study uses a qualitative method with an interpretive approach. The type of research is field research. The setting of the research was carried out at the Badan Amil Zakat Nasional (Baznas) of Kudus Regency. Data analysis techniques using data reduction, data presentation, and concluding. The informants of this research are the staff of Baznas Kudus and zakat stakeholders. The results of this study indicate that BAZNAS Kudus has been quite good in implementing the principles of transparency, accountability, responsibility, independence, and fairness. Komite Nasional Kebijakan Governansi (KNKG) in 2022 has issued General Guidelines for the Governance of Indonesian Non-Profit Organizations. The governance principles are transparency, accountability, ethics, and sustainability. For further research, this guide can be used as an analysis tool for the implementation of good governance in nonprofit organizations.

University of San Diego's Nonprofit Governance Symposium

University of San Diego's Nonprofit Governance Symposium

University of San Diego's Nonprofit Governance Symposium

University of San Diego's Nonprofit Governance Symposium